KUALA LUMPUR – Solar District Cooling Group Berhad (“SDCG”) is pleased to announce the financial results for the third quarter ended 30 September 2024 (“Q3 FY2024”), showcasing a 16.6% growth in revenue to RM5.41 million compared to the immediate preceding quarter’s (“Q2 FY2024”) RM4.64 million. This growth reflects the Group’s strong execution in provision and maintenance of Building Management Systems (“BMS”), solar thermal systems and energy saving services projects, further solidifying its position as a one of the leading provider of In renewable energy and energy efficiency solutions.
The Group’s gross profit for the current quarter increased by RM0.79 million or 29.05% to RM3.49 million as compared with the immediate preceding quarter of RM2.71 million mainly due to higher revenue recognised from the progress billing for the completed project by BMS segment. The gross profit margins improved quarter-on-quarter to 64.6% in Q3 FY2024 from 58.3% in Q2 FY2024, reflecting better project contributions and cost efficiencies.
Despite the revenue increase, SDCG recorded a loss before tax (“LBT”) of RM0.51 million in Q3 FY2024, compared to a profit before tax (“PBT”) of RM1.30 million in Q2 FY2024. The decline was primarily due to one-off IPO listing expenses of RM2.30 million incurred during the quarter. After adjusting for this one-off IPO listing expenses, SDCG would have reported an adjusted PBT of RM1.43 million, an increase of 10.0% compared to Q2 FY2024.
For the nine months ended 30 September 2024 (“9M FY2024”), SDCG achieved a cumulative revenue of RM16.08 million. PBT for the same period stood at RM2.66 million, underpinned by the Group’s diversified portfolio, including its flagship BMS, solar thermal systems and maintenance of other systems and equipment.
In recognition of its shareholders, SDCG’s Board of Directors has declared a single-tier interim dividend of 1.0 sen per SDCG Share for the financial year ending 31 December 2024. This underscores the Group’s commitment to delivering shareholder value while reinvesting in its strategic growth initiatives.
Managing Director of SDCG, Mr. Edison Kong stated, “This quarter’s performance highlights our ability to achieve strong revenue growth while effectively managing costs and optimising operational efficiency. We are committed to executing our robust strategy, which leverages strategic partnerships and innovation to address the growing demand for renewable energy and energy efficiency solutions.”
Looking ahead, SDCG remains focused on expanding its presence in Malaysia and Brunei through strategic partnerships and project executions. Its recent collaboration with Serikandi Oil Field Services Sdn Bhd in Brunei positions the Group to penetrate the regional market with innovative solutions such as solar air-conditioning and solar thermal systems. Additionally, the aggregate amount of the two contracts value of RM8.13 million secured from Mitrajaya Construction Sdn. Bhd. for the sub-contract work of the hospital support services in Malaysia demonstrate the Group’s expertise in delivering energy-efficient solutions tailored for the healthcare sector.
With its listing on the ACE Market of Bursa Malaysia Securities Berhad on 19 September 2024, SDCG is well-positioned to accelerate its expansion plans. Key strategies include exploring solar photovoltaic (“PV”) systems, enhancing its existing BMS portfolio, and scaling up solar thermal and energy-saving services. The Group aims to deliver long-term value by focusing on operational excellence, innovation, and sustainability.
Looking ahead, SDCG is optimistic about its growth trajectory, driven by strong market demand and a robust pipeline of projects. The Group is committed to advancing renewable energy and energy efficiency adoption and delivering value to stakeholders while contributing to global sustainability goals.
As at 28 November 2024, 5:00 P.M., SDCG’s share price closed at RM0.54 with a market capitalisation of RM228.9 million.
